Canary Gold Corp. (CSE: BRAZ; OTCQB: CNYGF; Frankfurt: K5D) announced that independent laboratory Overburden Drilling Management Limited (ODM) identified visible gold grains in laboratory-prepared gravity concentrates from 29 of 30 consecutive one-metre reverse-circulation (RC) samples collected from hole RC-0032 at the Jaci Paraná target within the Madeira River Project in Rondônia, Brazil. The results provide additional vertical information at one location within the approximately 6,700-hectare conceptual paleochannel target, but they do not represent head grades or establish grade continuity beyond the sampled hole.
The ODM analysis recovered a total of 190 visible gold grains. Of these, 156 grains (82.1%) were reshaped, consistent with transport and alluvial reworking within an auriferous sedimentary system. The visible-gold population is fine by particle count: 166 grains (87.4%) measured 100 micrometres (µm) or less. However, only five grains larger than 150 µm accounted for approximately 44.1% of the calculated visible-gold mass reported for the concentrate, illustrating a pronounced coarse-particle tail and material nugget-effect risk. The ODM observations are semi-quantitative; reported calculated ppb values relate to visible gold in a heavy-mineral concentrate and are not sample head grades, metallurgical recovery results, or mineral resource estimates.
“The significance of the ODM results is the repeated recovery of visible gold grains through the submitted interval in RC-0032, rather than any single calculated concentrate value,” said Mark Tommasi, President of Canary Gold. “The results provide additional vertical information at that location and support continued evaluation, but they are not representative head grades or metallurgical recovery results and do not establish grade continuity beyond the sampled hole. Our next phase is designed to generate representative and auditable volumetric data. We plan to test complete submitted RC sample material, quantify gravity recovery and losses and then evaluate focused sonic sampling. A major resource delineation program would only be considered if that work produces sufficiently encouraging and reproducible results.”
The current exploration database includes 45 RC holes totalling 2,851 metres, 14 PQ diamond drill holes totalling approximately 902 metres, and 63 screw auger holes totalling approximately 1,297 metres, for a combined 2026 program of approximately 5,050 metres. Drilling has intersected repeated intervals of rounded to subrounded granules, pebbles, gravels and coarse sands across the target area, consistent with an interpreted alluvial architecture. The broad spatial distribution of drilling provides geological context across a target measured in kilometres, but individual RC holes sample a very small volume relative to the conceptual paleochannel target.
The Company is planning an intermediate quantitative test program comprising approximately 40 selected one-metre RC samples, each expected to weigh approximately 25 kilograms. The proposed work would include controlled gravity concentration, analysis of the gravity product and tails, and mass-balance, volume and density controls, subject to final laboratory scope and Qualified Person review. This phase is intended to provide a more quantitative estimate of gold recovered from each complete submitted sample, assess gold remaining in the tails, identify losses associated with the current discovery-stage procedure, and inform selection of priority intervals for sonic sampling.
The Company also received an indication of potential sonic-drill availability in September 2026 and is evaluating contracting, site access, permitting, program design and budget requirements. Focused sonic sampling would be designed to assess representative recovered volumetric gold grades, expressed in milligrams per cubic metre (mg/m³), while preserving both fine gold and the important coarser-gold fraction. The initial design under consideration comprises close-spaced sonic grids across selected priority areas, with each grid potentially involving approximately 800 metres of drilling. Multiple priority areas may be tested, subject to the initial whole-sample results, access, permitting, contracting, financing and budget approval.
Each sonic interval would be processed using a documented and auditable protocol designed to assess recovered gold per controlled sample volume. The principal reporting metric is expected to be milligrams of recovered gold per cubic metre (mg/m³), supported by density, moisture, sample recovery and mass-balance data. Final terminology and conversion to an in-place volume basis will be reviewed by the Qualified Person before implementation.
Only if representative sampling produces sufficiently encouraging and reproducible grade, recovery, continuity, density, volume and mining-characteristic data would Canary consider a larger sonic drilling campaign. Subject to those results, the Company anticipates that a resource delineation phase could exceed 15,000 metres and would be designed to collect data required to assess whether an inferred mineral resource estimate can be prepared in accordance with National Instrument 43-101.
Approximately 50 additional samples are currently being processed by ODM. Further SGS batches from RC concentrate work are also pending or in progress. The proposed whole-sample testwork is expected to require approximately three to four weeks following laboratory receipt, subject to confirmation of the final scope, contracting and laboratory scheduling. The Company will provide further updates as material results are received and the sonic sampling program is finalized.
The scientific and technical information in this news release has been reviewed and approved by Andrew Lee Smith, P.Geo., a Qualified Person as defined by National Instrument 43-101. Mr. Smith is not independent of the Company, as he serves as Executive Chairman.
For more information on the Madeira River Project and Canary Gold's exploration activities, visit Canary Gold's website.
